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Privatisation of Enterprises in Burkina Faso |
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A Lucrative Investment Opportunity
Since 1991, the Government of Burkina Faso has embarked on economic reforms to restore the major macroeconomic balances. The privatization program is one important aspect of these reforms. The program began in 1991 as an option for the State to liberalize the national economy on the one hand, promoting the private sector and on the other hand, boosting economic growth. This liberalization took place by the disengagement of the state from productive and competitive sectors in favor of private companies, thus giving birth to a privatization program.
For the implementation of this program, a Privatization Commission has been set up. This commission is responsible for defining privatisation strategies and implementing them after approval by the Government. The monitoring of contractual commitments made by the investors in the context of transactions is provided by the tracking service of privatised enterprises hosted by the Inspectorate of public and parapublic enterprises (Ministry of Commerce, and Promotion of Enterprise and Craft). |
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STATUS OF IMPLEMENTATION OF PRIVATIZATION IN BURKINA FASO
Portfolio Executed
The first wave of privatizations carried out in Burkina Faso (from 1991 to 2000) has focused on small and medium enterprises of agro-industrial products and services.
Since then, investment opportunities offered by privatization have resulted in the transfer of thirty-one (31) companies authorised for privatization to the private sector through the four modes of privatization: sale of shares, increase of capital, transfer of assets and privatization of management.
The thirty-one (31) companies that were privatised are: SIFA, SONAR SBMC, SBCP SOBBRA, Brakina, PUB ZAMA, FASO-PLAST, SOBCA, GMB, CIMAT, SONAPHARM, SCFB, RNTC-X9, FLEX FASO, BURKINA and Shell-SHSB CITEC, FASO TOURS SOSUCO, SOPAL, SNTB, INB, SLM, Air Burkina, SHG, SOCOGIB, Hotel Independence, CGP, CBMP, CENATRIN, SONACIB.
Residual Portfolio
The program currently in execution has a very attractive residual portfolio.It consists of seven (07) enterprises undergoing privatization including the most important of public service enterprises that are ONATEL {(Office National des Telecommunications) National Telecommunications Office}, SONABEL {(Société National d?Electricité du Burkina) National Burkina Electricity Company} the SONABHY {(Société National des Hydrocarbures) National Hydrocarbon Company}.
These companies uncontestably, are among the most representative of the business fabric of Burkina and, in many respects serve as locomotives of the socio-economic development of Burkina Faso because of their impact on the competitivity of the national economy.
Others relate to companies operating in various sectors (mining, hotels, automobile control).
They are mainly: BUMIGEB{(Bureau des Mines et de la Géologie du Burkina) The Burkina Departmrnt of Mines and Geology}, Hotel SILMANDE, CCVA {(Centre de Contrôle des Vehicules Automobiles) Automobile Vehicle Control Centre}.
CONCLUSION
The sound character of all the undertakings concerned is a guarantee for the optimal develpment of the national economy.
The privatisation process is a major step in the opening of a big door for private entrepreneurs to invest in Burkina Faso. It is important to note that Burkina Faso has a very stable political situation and has a very stimulating investment code. It is well known in Africa as the member to have initiated the best reforms.
For any additional information please contact :
The Embassy of BurkinaFaso in Newdelhi
F 3/1 Vasant Vihar
New Delhi 110057
Email : embassy@burkinafasoindia.org
Ministry of Commerce and Promotion of Enterprise and Handicrafts
Tel :
50 32 47 86 - 99 |
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